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SEPARATE BILL TO REGULATE SMALL FACTORIES DRAFTED BY LABOUR MINISTRY
The Labour Ministry has drafted the Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014, that seeks to regulate small industries but at the same time provides ease of doing business to these units with an objective to simplify the law for small manufacturers but at the same time ensure welfare of the workers employed by them.
Small and medium enterprises workers which are to be brought under the ambit of a new legislation poised to cut down on cumbersome procedure by permitting online registration of units and e-filing of compliance returns by employers through a single unified form.
Section 2 in its clause (f) of the Act, SMALL FACTORY means any premises wherein a manufacturing process is carried on and which employs less than forty workers.
Accordingly, the draft Bill has sought to provide each employer a labour identification number that would allow him to register online and submit a single compliance report for all 44 labour laws. The new Bill also plans to do away with outdated provisions for labour welfare such as spittoons and washing and drying lines in each factory, that have been included in the new Factories Bill as well while considering the fact that small units often run out of a single room, the government plans to allow a cluster of small factories to provide washroom and toilet facilities to their combined workers.
"The employer shall provide sufficient latrine and urinals as may be prescribed and they shall be so conveniently situated as may be accessible for the workers employed in the small factory. However, in case it is not possible, due to constraint in space or otherwise several employers, may provide common facilities," the draft Bill has proposed.
Further to establish an employer-employee relationship as well as step up efforts to financial inclusion, the Bill has proposed that employer must transfer wages into a bank account instead of cash payments.
The following laws shall not apply to any small factory:
1. The Factories Act, 1948
2. The Industrial Disputes Act, 1947
3. The Industrial Employment (Standing Orders) Act, 1946.
4. The Minimum Wages Act, 1948
5. The Payment of Wages Act, 1936
6. The Payment of Bonus Act, 1965
7. The Employees State Insurance Act, 1948
8. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952
9. The Maternity Benefit Act, 1961
10. The Employees' compensation Act, 1923
11. The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
12. (State) Shops and Establishments Act
13. The Equal Remuneration Act, 1976.
14. The Child Labour (Prohibition and Regulation) Act, 1986
The comments by the stakeholders have been invited by 15th November, 2014.
For complete text of the Bill, kindly visit our Website : www.labourlawreporter.com
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